Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief

[Black_cats]

Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief​

Abdur Rouf Talukder provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart in the US​

Staff Correspondent
Published : 14 Oct 2022, 03:52 AM
Updated : 14 Oct 2022, 03:52 AM

Bangladesh is hopeful that Sri Lanka will repay the debt of $200 million that it owes to the country by March 2023.

Abdur Rouf Talukder, governor of Bangladesh Bank, provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart Nandalal Weerasinghe in the United States.

The central bank chief travelled to Washington, DC, to attend the Annual Meetings of the International Monetary Fund and World Bank.

The two governors held a discussion on the sidelines of the seven-day event which began at the World Bank headquarters on Tuesday.

Speaking to reporters on Thursday, Talukder said, "We [Bangladesh] gave $200 million to Sri Lanka under a currency swap agreement. But due to Sri Lanka's economic crisis, they could not return the money on time."

In light of the crippling economic crisis that gripped the island nation, Bangladesh twice extended the deadline for repayment on Sri Lanka's request, Talukder noted. "Sri Lanka is supposed to return it in three instalments in February and March 2023."

On the talks with Weerasinghe, Talukder said, "We had a very good meeting. The governor assured me that they will meet the deadline for repayment. They are now restructuring their debts and have spoken to India, Japan and China about it."

"And Sri Lanka is also working on a deal with the IMF that has also been roughly confirmed. A final agreement on the program will probably be reached between November and December.”

Last year, Bangladesh agreed to give Sri Lanka loans of at least $200 million from its foreign exchange reserves under a currency swap deal.

The credit was to be repaid in installments over three months, the central bank said at the time.

But as the economic and political crisis in Sri Lanka worsened, its external debt became unsustainable. With political stability gradually being restored, Sri Lanka is now moving towards repaying its debts.

Central bank governors from Commonwealth countries are also holding a meeting on Friday. Bangladesh has been given the opportunity to chair the meeting, according to Talukder.

The governor is leading an 11-member Bangladeshi delegation at the annual event in place of Finance Minister AHM Mustafa Kamal, who could not make the trip.

Talukder also met the vice chairman of the US banking giant JPMorgan and the managing director of Standard Chartered's Asia-Pacific region.

"They want to offer various facilities to Bangladesh. We told them that we appreciated their interest. If we increase the size of our loans in future then why not. We asked them to support our private sector."

Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief

Abdur Rouf Talukder provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart in the US

bdnews24.com

 

[bluesky]

Bangladesh is hopeful that Sri Lanka will repay the debt of $200 million that it owes to the country by March 2023.

We should not be hopeful at all to get back the $200 million from SL. And our govt should not bother asking or expecting the money back until the tourist industry in SL revives.

For now, let us just hope for a better future for SL relieved of the present suffering.

 

[mb444]

Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief​

Abdur Rouf Talukder provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart in the US​

Staff Correspondent
Published : 14 Oct 2022, 03:52 AM
Updated : 14 Oct 2022, 03:52 AM

Bangladesh is hopeful that Sri Lanka will repay the debt of $200 million that it owes to the country by March 2023.

Abdur Rouf Talukder, governor of Bangladesh Bank, provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart Nandalal Weerasinghe in the United States.

The central bank chief travelled to Washington, DC, to attend the Annual Meetings of the International Monetary Fund and World Bank.

The two governors held a discussion on the sidelines of the seven-day event which began at the World Bank headquarters on Tuesday.

Speaking to reporters on Thursday, Talukder said, "We [Bangladesh] gave $200 million to Sri Lanka under a currency swap agreement. But due to Sri Lanka's economic crisis, they could not return the money on time."

In light of the crippling economic crisis that gripped the island nation, Bangladesh twice extended the deadline for repayment on Sri Lanka's request, Talukder noted. "Sri Lanka is supposed to return it in three instalments in February and March 2023."

On the talks with Weerasinghe, Talukder said, "We had a very good meeting. The governor assured me that they will meet the deadline for repayment. They are now restructuring their debts and have spoken to India, Japan and China about it."

"And Sri Lanka is also working on a deal with the IMF that has also been roughly confirmed. A final agreement on the program will probably be reached between November and December.”

Last year, Bangladesh agreed to give Sri Lanka loans of at least $200 million from its foreign exchange reserves under a currency swap deal.

The credit was to be repaid in installments over three months, the central bank said at the time.

But as the economic and political crisis in Sri Lanka worsened, its external debt became unsustainable. With political stability gradually being restored, Sri Lanka is now moving towards repaying its debts.

Central bank governors from Commonwealth countries are also holding a meeting on Friday. Bangladesh has been given the opportunity to chair the meeting, according to Talukder.

The governor is leading an 11-member Bangladeshi delegation at the annual event in place of Finance Minister AHM Mustafa Kamal, who could not make the trip.

Talukder also met the vice chairman of the US banking giant JPMorgan and the managing director of Standard Chartered's Asia-Pacific region.

"They want to offer various facilities to Bangladesh. We told them that we appreciated their interest. If we increase the size of our loans in future then why not. We asked them to support our private sector."

Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief

Abdur Rouf Talukder provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart in the US

bdnews24.com

Get the money back quickly, it is however accruing interest in the mean time. As long as they service their debt increase the length of the deal.

No problem helping anyone but we need to play it straight. SL must honor their debt without fail. We do not owe them any favor because we can neither afford it nor are they any great friends of BD.

 

[fallstuff]

I doubt this will happen, can anybody provide better information about Sri LLank's reserve situation ?

 

[BananaRepublicUK]

I doubt this will happen, can anybody provide better information about Sri LLank's reserve situation ?

SL is a truly buggered up country.

Their delusional population voted for a maniac - and deserve zero sympathy.

Get our hard earned money back.

 

[Destranator]

"They want to offer various facilities to Bangladesh. We told them that we appreciated their interest. If we increase the size of our loans in future then why not. We asked them to support our private sector."

Sri Lanka to pay back $200m loan by March, says Bangladesh Bank chief

Abdur Rouf Talukder provided a positive outlook on the matter after a meeting with his Sri Lankan counterpart in the US

bdnews24.com

#StringofT-Shirts

 

[MH.Yang]

Sri Lanka is now unable to pay its debts. Perhaps the Bangladeshi government should restructure or postpone its debt. The current economic situation of Bangladesh is the best in South Asia.

 

[SoulSpokesman]

@MH.Yang

Perhaps the Bangladeshi government should restructure or postpone its debt.

Better yet, China which is very wealthy with USD 3 trillion reserves, should waive off Lankas debts

Regards

 

[bluesky]

@MH.Yang

Perhaps the Bangladeshi government should restructure or postpone its debt.

Better yet, China which is very wealthy with USD 3 trillion reserves, should waive off Lankas debts

Regards

Japan has waived off more than $9 billion of the old BD loans. The USA also waived a similar amount. Still, BD remains at the lowest rung of economic development.

Much of the borrowed money has been stolen by people who are rich and powerful. The latest is the laundering of $7 billion by these people.

So, BD remains an international basket case. This is almost what Dr. Kissinger once said.

 

[mb444]

SL is a truly buggered up country.

Their delusional population voted for a maniac - and deserve zero sympathy.

Get our hard earned money back.

Yeap i have no sympathy at all.

We should not have agreed to loan them anything, they supported the burmese against us over rohingya. Where were their buddist fascists brothers when they were at need

 

[BananaRepublicUK]

Yeap i have no sympathy at all.

We should not have agreed to loan them anything, they supported the burmese against us over rohingya. Where were their buddist fascists brothers when they were at need

I agree. Not sure why we gave these bigots 200 million.

Unless they agreed to some big favours which cannot be made public.

Maybe these favours were to BAL goons.

Japan has waived off more than $9 billion of the old BD loans. The USA also waived a similar amount. Still, BD remains at the lowest rung of economic development.

Much of the borrowed money has been stolen by people who are rich and powerful. The latest is the laundering of $7 billion by these people.

So, BD remains an international basket case. This is almost what Dr. Kissinger once said.

Japs and Uncle Sam get trade facilities and geopolitical benefits in return.

9 billion is pittance.

Our vote against Russia is worth billions alone.